Fool News: IMF Highlights Risk To UK Housing Market
Britain could be at risk of a fall in the housing market similar to that in the US, according to the IMF.
Britain could be at risk of a fall in the housing market similar to that in the US, the International Monetary Fund (IMF) has warned.The IMF has added more fuel to the housing market debate by suggesting that house prices globally could potentially follow downward housing market trends in the US. Housing markets in many other countries have also enjoyed boom conditions in recent years, with some markets now showing signs of softening.The IMF stated: 'there remains the concern that the US experience might presage steep housing downturns in other countries that have also experienced a rapid rise in house prices, with associated risks for output growth.'The report also highlights that UK house prices have escalated far higher than incomes over the past few years. Here in Britain they now stand at about nine times annual average earnings - up from about five times in 2001.This report certainly provides further fodder for housing market bears. More: House Price Figures Are Surprisingly Strong